Supplying the Right Buying Signals (from a Sellers Perspective) 3 rd - - PowerPoint PPT Presentation

Supplying the Right Buying Signals (from a Seller’s Perspective)

 Richard Drake 3rd March 2015 Hull University

Opening Questions

By a show of hands:

How many people in the room are

professional Buyers or Procurement?

How many people in the room are

professional Salespeople?

Qualifying Questions

 Have to consider company revenue as part, directly or

indirectly, of their job?

 Have to consider company profit as part, directly or

indirectly, of their job?

 Have to interact with external companies in their job?  Are driven by KPIs and Performance Metrics in their job?

Buyers have plenty in common with Sellers Again by a show of hands - How many people in the room:

Agenda

 Short Speaker Bio & OSL Consulting (18:00)  Account Management (18:10)

 References  A Basis for Selling  Account Types and Behaviours  Behaviours that Buyers can Expect  Short Group Exercise

 Account Planning (18:40)

 Example Account Plan  Key Buying Features of Account Plans  Typical Spread of Account Plans

 Examples of Buying Excellence (18:50)  Supplying the Right Buying Signals (19:00)  Questions and Further Discussion (19:10)

Current Role: Head of Business Development, OSL Consulting Total Career Experience: 17 years OSL: Head of BD – Vision to enact the sales activity for the growth plans of the company ABB: Sales Team – Sales effectiveness and team revenue growth Contributed to Pharma sector growth 51% YoY Sales Excellence Champion / ISPE ABB Significant Contribution Award Emerson: Product Manager, AMS Performance Products Emerson: Business Support Manager Emerson: Performance Monitoring (Lead/Senior) Engineer Invensys: SimSci Technical Engineer ABB Certificate: Manager Development Programme – (pre-MBA) Chartered Chemical Engineer: Newcastle, BEng CEng MIChemE Background Technical Expertise: Thermodynamic & mathematical modelling, data analysis and interpretation Paper & Tissue Manufacturing Kleenex Double Velvet & Quilted – Chemical Engineer (Newcastle) Zewa Wisch & Weg and Softis – R&D Engineer (Germany)

Richard Drake Biography

• Professional Groups: Outgoing Chair of IChemE Pharma SIG

 House Project  Cycling &

Motorsport

 Rugby League

Some Personal Interests

Buying and Selling is still all about person to person relationships… So understanding who you work with is an important part of those relationship

Head of Business Development: OSL Consulting

 Engineering and Design Consultancy to the Gas, Oil & Energy

markets

 Established 2005 and privately owned  Highly skilled and qualified engineers, wealth of knowledge  Conceptual engineering to full implementation  Provide innovative technical solutions  Specialist resourcing capability  Head Office & Operations – Hull  Key Operating Hubs - Aberdeen,

Great Yarmouth

References for Account Management

 Key account management books are certainly worth

reading

 Some examples of books on the subject are those from

Peter Cheverton (pictured below)

Account Management – a Basis for Selling

 Bowtie  Fast Forward  Diablo  Diamond

What do the following shapes all have in common?

A: Behaviour Types in Account Management

1-to-1 1-to-Many Duet Many-to-Many

Supplier Relative Strength or Attractiveness Client Growth Potential

High Low High

Development Accounts Key Accounts Opportunistic Accounts Established Accounts

Account Type Diagram - 4 Sections

Summary: Account Type Acc Plan Required? O Opportunistic No D Development YES (1pg) K Key YES (5pg) E Established YES (2pg)

Supplier Relative Strength or Attractiveness Client Growth Potential

High Low High

Development Accounts Key Accounts Opportunistic Accounts Established Accounts

2 pg a/c plan 5 pg a/c plan 1 pg a/c plan No a/c plan

Account Type Typically Changes Over Time

Account Type Definition (Opp & Dev)

Opportunistic Account

• Can supply and make money
• Some proactive sales effort required
• Lower expected revenues
• Standard margins/Low effort
• Relative sales effort <2.5%
• Prospected for marketing purposes
• 1-to-1 Account Management Style

Development Account (1pg plan)

• Large effort vs return
• Pushing to grow further
• Potential high revenue growth: 20% pa
• Value products and services being sold
• Significant sales effort required >15%
• Can be regional area selling

– May have more than one site

• Should have simple account plan

– Break in and build position

• Single service to single offer
• 1-to-1 & 1-to-Many & Duet Account

Management Style

Account Type Definition (Key & Est)

Key Account (5pg plan)

• Typically buy multiple products or

services

• Highly value products and services
• Very high growth potential
• High level customer engagement
• Agreed TCs and price book
• Multi-site
• V significant Sales effort 30%
• Stretch the initial position
• Targeting multi-service to multi site
• Duet & Many-to-Many Account

Management Style

Established Account (2pg plan)

• Further growth limited
• Demonstrate care & account

nurturing

• Aggressively maintain

position/income

• Keep competitors out at all costs
• Multi point contact active
• Relative Sales effort <5%
• Agreed TCs and price book
• 1-to-Many Account Management

Style

Behaviours that Buyers can Expect

Supplier Relative Strength or Attractiveness Client Growth Potential

High Low High

Development Accounts Key Accounts Opportunistic Accounts Established Accounts

2 pg a/c plan 5 pg a/c plan 1 pg a/c plan No a/c plan

 Standard Prices  Low number of contact points  Risk of not working in the past  Could have a new technology?  Lots of unknowns  Multiple people in the org know sales person  Considering framework agreements  Offers better ways of doing things & bigger picture  Multiple opportunity  Strategic pricing & framework  Considering market forces and pain/gain share models  Know long term views  Proactively look for value add  Many people known  Long term pricing  Will work to maintain position  Might end up “Opportunistic” if little revenue

Exercise – Define Example Account Type

 You’re all going to be salespeople for a

moment…

 We’ll take 4 well known company names:

 East Coast Trains / HSBC / Rolls Royce / Apple

 Arrange those companies onto the Account

Types based upon:-

 Exercise 1 – Small IT supply company  Exercise 2 – Large manufacturing company  Once we’ve completed them - we’ll hear a few

reasons from the audience

Account Planning

 An account plan gives us an insight into the

selling/buying interface

 Whilst these are a tool for salespeople – the content

drives behaviours and what buyers will be offered

 Its worth reading some of those behaviours to

understand how salespeople are trying to help your business

 Personal example: Quick form account plan - Quad

• chart. Used for account plan review with a team

OVERALL STATUS: Account needs support Example Account Name #1

Account Manager – Richard Drake Current Status 1 – Just taken over the account – need to verify existing account plan Current Status 2 – Good relationships with some contacts Latest Org chart required. Don’t know new ops manager Current Status 3 – We are on preferred supplier list – how can we offer other products? Track Record: Engineering Support - Prod #1 and Prod #2

2015 Top 3 Prospects

Prospect Name Product Value £ (% ) Qtr Due Engineering Support 1 Prod #1 Continuation £AA.aa (70%) Qtr 2 Engineering Support 2 Prod #3 Trial £BB.bb (50%) Qtr 3 Engineering Support 3 Prod #4 Trial £CC.cc (20%) Qtr 3

2015 Year End Forecast

YTD (£k) Mar 2015 Target (£k) 2015 Forecast (£k) 2015 £ ~ XX.xx £~ YY.yy £~ ZZ.zz

Account Team and Future Actions

Lead Process Eng, Lead Mech Eng, Snr EC&I Eng  Run next account meeting  Follow up customer request to visit (specific topic)  Consider how we can offer extra support  Offer time line to trial of Prod #4  White space analysis

Support Required / Biggest Problem

 Incumbent has good track record  2015-16 framework agreement needs renewing

1 5 2 10 3 15 4 20 5 25

Historical Revenue & Profit £k %

Q4 2013 Q1 2015 Q3 2014 Q4 2014 Q1 2014 Q2 2014

Key Buying Features of an Account Plan

Any specifics we should be looking out for?

 Organogram

 Any account above opportunistic  Who are the people that will benefit - service / technology (etc)

 High level Company background

 What are the values of the business  Cost structures / where is value added

 Increasing volume

 Allows more efficient pricing

 Multi-site activity

 Drive an overall price structure  Cross site learning – very cheap way to generate ROI  Best practice can be adopted easily

 Long term benefit analysis

 Ensure executive teams hear about company improvement & best practice

Typical Spread of Accounts / Plans (%)

 Typical spread of

where effort is put on generating account plans

Supplier Relative Strength Or Attractiveness Customer Growth Potential High Low High

Development Accounts KEY Accounts Opportunistic Accounts Established Accounts

10 50 20 20

Low

Typical Spread of Accounts / Plans (%)

Account Plan Required

Supplier Relative Strength Or Attractiveness Customer Growth Potential High Low High

Development Accounts KEY Accounts Opportunistic Accounts Established Accounts

10 30 20 20 15 5

Low

Summary: Before % After %

Total Accounts 100 100 Accounts WITH Plans 90 55 Accounts Without Plans 10 45

Account management best practice involves continually assessing accounts and the appropriate behaviours needed for them: Accounts ‘needing’ plans



Bottom half can be reduced for required account plans



Generates more effective use

• f the plans in place



Creates time for account meetings and account teams

Examples of Buying Excellence

Good Practice

 Example of selling to buyer

who explains the longer term process

 Search for efficiencies with

bigger picture discussion

 Asks for value add and how

to achieve this

 Allows innovation to take

place

 Prepared to share

favourable / less favourable market conditions Not Good Practice

 Example of selling to buyer

who only wants discount regardless of volume

 Resulting in account type

downgrade

 Reducing positive

behaviours

 Not considering the selling

process

 Blocking discussions with

rest of organisation

Supplying the Right Buying Signals

Summary of Good Practice

 Look to build relationships – externally and internally  Knowing the selling account type  What behaviours can you expect  Talk about the bigger picture  Support seller’s understanding of your business  Allowing sellers to offer innovative solutions  Share market conditions – both directions

Providing Better Solutions Both Technically & Economically To Our Clients

Thank you for listening… Any Questions?

OSL Consulting

 Engineering and Design Consultancy to the Gas, Oil & Energy

markets

 Established 2005 and privately owned  Highly skilled and qualified engineers, wealth of knowledge  Conceptual engineering to full implementation  Provide innovative technical solutions  Specialist resourcing capability  Head Office & Operations – Hull  Key Operating Hubs - Aberdeen,

Great Yarmouth

OSL Market Sectors

 Gas Production and Storage  Oil  LNG  Petrochemical  Low carbon and renewables

Target sectors for the business remain firmly in the energy arena, with gas and oil at the heart of the OSL client base.

OSL Products and Services

 Process engineering  Rotating equipment design &

• peration

 Conceptual design work  Feasibility studies  Front End Studies  Project development  Design and management  Provide a team of engineers &

designers

 Optimisation and Modelling  Detailed Engineering  Project Management  Technical Assurance  Design Review  Due Diligence  HAZOP, EIA, SIL, COMAH etc  RAM, Ops and Maintenance  Project Lifecycle Support

OSL bring together skills in process, mechanical and E,C&I engineering. This is balanced with the key operating knowledge of process plant, equipment, its design and operation.

OSL Specialist Resourcing

 Specialist permanent gas and oil engineering recruiter  Large network of qualified, proven engineers  Most Engineers are already known to OSL and all are interviewed in

advance

 Accessible head office technical support  Effective contractor management process  OSL Candidate Management Process

 First Day Checks > Client/Candidate  First Week and First Month (Key Call)  OSL Commitment to maintain contact

(3-monthly)

 Always available to hear from clients at

any time  Transparent and competitive resourcing rates